Baltimore has filed lawsuits against prediction market platforms Kalshi and Polymarket, accusing them of running illegal sports betting operations without the licenses required in Maryland. The suits, filed Aug. 13 in the Circuit Court by Mayor Brandon M. Scott and the Baltimore City Council, allege the companies violate the city's Consumer Protection Ordinance and mislead residents about the legality of their products.
What the city alleges
The lawsuits claim Kalshi and Polymarket let Baltimore residents bet on game winners, point spreads, point totals, player statistics, and other outcomes. Neither platform holds a Maryland license, the city says, yet they compete directly with regulated sportsbooks while sidestepping oversight, taxation, responsible-gambling requirements, and consumer protections.
Baltimore is seeking civil penalties, injunctive relief, restitution for affected consumers, and disgorgement of profits. The city argues the platforms' marketing misrepresents their legal status, leaving bettors without the safeguards that come with licensed operators.
Kalshi's mounting legal pressure
Kalshi is already fighting on multiple fronts. New York State Attorney General Letitia James has sued to shut down its operations there. The U.S. Commodity Futures Trading Commission used emergency authority to require Kalshi to keep operating in New York after the company sought federal help. A separate lawsuit from FlightAware over flight-related prediction markets was voluntarily dismissed a day after it was filed.
Polymarket's regulatory friction
Polymarket has its own troubles. JPMorgan Chase stopped providing banking services to the platform late last year, forcing it to move to an undisclosed lender. In Washington, D.C., the National Association of Consumer Advocates filed a consumer protection lawsuit alleging deceptive advertising. That case cites reports of political influencers praising Polymarket without disclosing paid deals, and a Wall Street Journal investigation that found simulated videos.
Neither company has publicly responded to Baltimore's lawsuits. The cases are now pending before the Circuit Court, where the city is asking for an injunction that would bar the platforms from offering these markets within city limits.
